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Elements of turnover

Manas Mitra (Service) (33 Points)

09 July 2016

A Bill of a Business House (Hospital) shows different charges to a patient which also include Surgery Charges payable to a Surgeon. Should this be included as an element of Turnover or to be provided as liability. Please confirm

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Neeraj P Chourasia (Accountant) (60 Points)
Replied 09 July 2016

Though, Surgery charges payable to a Surgeon is the liability of the Business House (Hospital) but it is recovered from the patient by raising bill of the Business House. Hence, it should become part of the turnover. The Surgeon is not directly giving his services to patient. He is providing it on behalf of the Hospital and not taking his fees directly from the patient.

Hope this will clarify your query.